Capital Senior Living Corporation Reports First Quarter 2002 Earnings of Nine Cents Per Share, Including a Four Cent Gain On Asset Sales.Business Editors DALLAS--(BUSINESS WIRE)--May 1, 2002 Capital Senior Living Corporation (NYSE NYSE See: New York Stock Exchange :CSU See DSU/CSU. 1. CSU - California State University. 2. CSU - Cleveland State University. 3. CSU - Channel Service Unit. ), one of the country's largest operators of senior living communities, announced its operating results for the first quarter of 2002. The Company reported net income of $1.8 million, or nine cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , including earnings of five cents per share from operations and a gain of four cents per share on the sale of two assets owned by an affiliated partnership. "After ten consecutive years of profitability, we are pleased to start 2002 on such a positive earnings note," James A. Stroud This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Chairman of the Company said. "Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. earnings more than doubled from the level achieved one year ago." OPERATING AND FINANCIAL RESULTS For the first quarter of 2002, the Company had revenues of $16.6 million compared to revenues of $18.0 million for the same period in 2001. The primary factor contributing to the lower revenue in 2002 was the sale of the Cambridge Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. Nursing Home in the third quarter of last year. This facility contributed approximately $1.5 million of revenue in the first quarter of 2001. Excluding the contribution of this facility to last year's first quarter, Resident and Healthcare Revenue increased $1.0 million or 6.8%. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the first quarter of 2002 was $4.6 million, compared to $5.6 million in the prior year, largely due to a reduction in Rental and Lease Income. Triple net leases on four communities owned by an affiliated partnership expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in the fourth quarter of 2001. During the first quarter of 2002, Healthcare Properties, L.P. ("HCP HCP, n healthcare provider, a professional who specializes in treating and managing a person's general or specific health needs. "), a limited partnership in which Capital Senior Living Corporation holds approximately a 57% interest, sold two skilled nursing facilities skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. on which it realized a $2.3 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain. This gain, net of minority interests, contributed $0.8 of net income, or four cents per share, in the first quarter. Net income, including the gain on the asset sales, was $1.8 million or nine cents per share in the first quarter of 2002 compared to net income of $0.4 million or two cents per share in the comparable prior year period. Cash earnings, defined as net income plus deprecation dep·re·cate tr.v. de·pre·cat·ed, de·pre·cat·ing, de·pre·cates 1. To express disapproval of; deplore. 2. To belittle; depreciate. , were $3.5 million or $0.18 per share for the first quarter of 2002, compared to cash earnings of $2.2 million or $0.11 per share in the prior year period. As of March 31, 2002, the Company had $14.4 million in cash and cash equivalents and $115.4 million in shareholder's equity. "We continue to report progress in a number of key operating measures," stated Lawrence Lawrence. 1 City (1990 pop. 26,763), Marion co., central Ind., a residential suburb of Indianapolis, on the West Fork of the White River. It has light manufacturing. 2 City (1990 pop. 65,608), seat of Douglas co., NE Kans. A. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , Chief Executive Officer of the Company. "Occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: on our stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. communities both improved over the fourth quarter of 2001. These factors, combined with low interest rates, have contributed to an exceptional quarter." HIGHLIGHTS FOR THE QUARTER Company highlights for first quarter 2002 include: -- Net income of $1.8 million and basic and diluted net income per share of $0.09; -- Cash earnings of $3.5 million, or $0.18 per share; -- Average occupancy rate on stabilized communities of 93 percent; -- Recently opened communities are leased to 66%; -- Same community revenue increase of 6 percent; and -- Independent and assisted living community operating margins averaged 43 percent. 1Q02 CONFERENCE CALL INFORMATION Members of the Company's senior management team will discuss first quarter 2002 results via a telephone conference call on Wednesday Wednesday: see week. , May 1, at 11 a.m. Eastern Daylight Time. The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number is 913-981-5571. No confirmation number is required. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com through Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. or RealPlayer. For the convenience of the Company's shareholders and the public, the conference call will be recorded and available for replay starting May 1 at 12 noon until May 8 at 6:00 p.m. Eastern Daylight Time. To access the conference call replay, call 719/457-0820 (reference code 695503). The conference call will also be made available for playback Playback could mean:
ABOUT THE COMPANY Capital Senior Living Corporation is one of the nation's largest operators of residential communities for senior adults. The Company's operating philosophy emphasizes a continuum Continuum (pl. -tinua or -tinuums) can refer to:
n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. and home care services, to provide residents the opportunity to age in place. The Company currently owns and/or operates 42 communities in 20 states with a total capacity of approximately 6,700 residents. In the communities operated by the Company, 85 percent of residents live independently and 15 percent of residents require assistance with activities of daily living. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company's ability to find suitable acquisition properties at favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms, financing, licensing, business conditions, risks of downturns in economic condition generally, and satisfaction of closing conditions such as those pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to licensure licensure (lī´s  nsh . These and other risks are
detailed in the Company's reports filed with the Securities and
Exchange Commission.
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2002 2001
--------- ----------
ASSETS (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 12,323 $ 9,975
Restricted cash 2,100 2,100
Accounts receivable, net 3,337 1,438
Accounts receivable from
affiliates 921 366
Interest receivable 7,323 6,072
Investment in limited partnership 222 5,774
Federal and state income taxes
receivable 268 1,145
Deferred taxes 2,770 2,770
Prepaid expenses and other 369 1,218
--------- ---------
Total current assets 29,633 30,858
Property and equipment, net 193,288 196,821
Deferred taxes 7,440 7,540
Notes receivable from affiliates 64,107 59,020
Investments in limited partnerships 1,856 1,827
Assets held for sale 4,924 4,924
Other assets 5,991 7,092
--------- ----------
Total assets $ 307,239 $ 308,082
========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,703 $ 3,040
Accrued expenses 3,470 3,363
Current portion of notes
payable 23,643 25,594
Customer deposits 1,101 1,144
--------- ----------
Total current liabilities 31,917 33,141
Deferred income 535 507
Deferred income from affiliates 1,628 1,750
Notes payable, net of current portion 148,248 149,202
Line of credit 7,553 7,553
Minority interest in consolidated
partnership 1,997 2,385
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value:
Authorized shares 15,000,000; no
shares issued or outstanding -- --
Common stock, $.01 par value:
Authorized shares 65,000,000;
issued and outstanding
19,719,843 and 19,717,347 at March
31, 2002 and December 31, 2001,
respectively 197 197
Additional paid-in capital 91,941 91,935
Retained earnings 23,223 21,412
--------- ---------
Total shareholders' equity 115,361 113,544
--------- ---------
Total liabilities and
shareholders' equity $ 307,239 $ 308,082
========= =========
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share)
Three Months Ended March 31,
2002 2001
-------- --------
(Unaudited) (Unaudited)
Revenues:
Resident and healthcare revenue $ 15,579 $ 16,040
Rental and lease income 37 1,031
Unaffiliated management services
revenue 366 504
Affiliated management services
revenue 410 387
Unaffiliated development fees -- 24
Affiliated development fees 183 57
---------- ---------
Total revenues 16,575 18,043
Expenses:
Operating expenses 8,772 9,304
General and administrative expenses 3,157 3,114
Depreciation and amortization 1,646 1,743
---------- ---------
Total expenses 13,575 14,161
---------- ---------
Income from operations 3,000 3,882
Other income (expense):
Interest income 1,429 1,541
Interest expense (2,828) (4,249)
Equity in the earnings (losses)
of affiliates 11 (253)
Gain on sale of properties 2,283 --
--------- ---------
Income before income taxes and
minority interest in consolidated
partnership 3,895 921
Provision for income taxes (1,124) (262)
--------- ---------
Income before minority interest in
consolidated partnership 2,771 659
Minority interest in consolidated
partnership (960) (232)
--------- ----------
Net income $ 1,811 $ 427
========= ==========
Net income per share:
Basic $ 0.09 $ 0.02
========= ==========
Diluted $ 0.09 $ 0.02
========= ==========
Weighted average shares
outstanding - basic 19,718 19,717
========= ==========
Weighted average shares
outstanding - diluted 20,022 19,717
========= ==========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion